AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
85.07 USD
-0.96 (-1.12%)
85.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 71 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of AIR get a neutral evaluation. Nothing too spectacular is happening here. AIR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AIR was profitable.
AIR had a positive operating cash flow in the past year.
Each year in the past 5 years AIR has been profitable.
Each year in the past 5 years AIR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.99%, AIR is in line with its industry, outperforming 47.89% of the companies in the same industry.
AIR has a Return On Equity of 2.31%. This is comparable to the rest of the industry: AIR outperforms 49.30% of its industry peers.
The Return On Invested Capital of AIR (8.79%) is better than 74.65% of its industry peers.
AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.60%.
The last Return On Invested Capital (8.79%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
With a Profit Margin value of 1.01%, AIR perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
AIR's Profit Margin has improved in the last couple of years.
AIR has a Operating Margin (9.31%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AIR has grown nicely.
Looking at the Gross Margin, with a value of 19.04%, AIR is doing worse than 67.61% of the companies in the same industry.
In the last couple of years the Gross Margin of AIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
The number of shares outstanding for AIR has been increased compared to 1 year ago.
Compared to 5 years ago, AIR has more shares outstanding
Compared to 1 year ago, AIR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.38 indicates that AIR is not in any danger for bankruptcy at the moment.
AIR's Altman-Z score of 3.38 is in line compared to the rest of the industry. AIR outperforms 45.07% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
AIR has a worse Debt to Equity ratio (0.82) than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.38 |
ROIC/WACC0.89
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.91 indicates that AIR has no problem at all paying its short term obligations.
AIR has a Current ratio of 2.91. This is comparable to the rest of the industry: AIR outperforms 57.75% of its industry peers.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, AIR perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 17.59% in the last year.
Measured over the past years, AIR shows a small growth in Revenue. The Revenue has been growing by 6.06% on average per year.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.18% yearly.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue Next Year15.84%
Revenue Next 2Y13.09%
Revenue Next 3Y10.44%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.60, which indicates a rather expensive current valuation of AIR.
AIR's Price/Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 91.55% of the companies in the same industry.
AIR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
AIR is valuated correctly with a Price/Forward Earnings ratio of 16.07.
AIR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 94.37% of the companies in the same industry.
AIR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
AIR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AIR is cheaper than 94.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AIR may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 16.18% in the coming years.
PEG (NY)1.32
PEG (5Y)1.62
EPS Next 2Y16.51%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
85.07
-0.96 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.92%
Market Cap3.37B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target92.48 (8.71%)
Short Float %2.92%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)4.12%
PT rev (3m)9.13%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)6.49%
Revenue NY rev (1m)4.77%
Revenue NY rev (3m)9.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16.07 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | 343.4 | ||
| P/B | 2.69 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 13.42 |
EPS(TTM)4.13
EY4.85%
EPS(NY)5.29
Fwd EY6.22%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.32
PEG (5Y)1.62
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.38 |
F-Score6
WACC9.84%
ROIC/WACC0.89
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year15.84%
Revenue Next 2Y13.09%
Revenue Next 3Y10.44%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year47.08%
EBIT Next 3Y22.53%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.6 and the Price/Book (PB) ratio is 2.69.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.